Ingredion-Sanstar Joint Venture: CAM Advises on Dual-Leg India Deal
Cyril Amarchand Mangaldas has advised the Ingredion Group on its investment and long-term strategic partnership with Sanstar Limited, a deal comprising a 9% equity stake acquisition and the formation of a 70:30 joint venture. The partnership was announced on May 28, 2026, with Ingredion forming a strategic tie-up with Sanstar, a manufacturer of corn-based specialty products based in India.
Introduction
Ahmedabad-based Sanstar Limited entered into two definitive agreements with the USD 7.2 billion US-based multinational Ingredion Incorporated (NYSE: INGR) for a strategic partnership aimed at accelerating growth in India’s specialty ingredients sector, subject to requisite shareholder and other applicable approvals.
The transaction has two distinct legs. First, Ingredion subscribed to 9% of Sanstar’s share capital as a strategic investor through a preferential allotment. In the second agreement, Sanstar Limited and Ingredion Incorporated executed a definitive shareholders’ agreement to establish a jointly owned entity in India for the manufacture, sale, and distribution of a diversified portfolio of specialty pharmaceutical and other specialty ingredient products across high-value end-use markets. The JV is structured on a 70:30 basis between Ingredion and Sanstar respectively.
The JV entity plans to set up a manufacturing facility in western India to manufacture specialty ingredient excipients for pharmaceutical and other products. As part of the partnership, Ingredion would contribute proprietary formulation, process technology and global applications know-how, while Sanstar would contribute local manufacturing, procurement and regulatory expertise.
Cyril Amarchand Mangaldas advised Ingredion on all Indian law aspects of both transactions.
Deal Value
Under the first agreement, Sanstar’s board approved a preferential allotment of equity shares to Ingredion through its subsidiary Corn Products Development Inc. at ₹110 per share, in compliance with the Companies Act and SEBI regulations. The total fund raise under the proposed transaction is ₹198.3 crore (approximately US$20.88 million).
Sanstar will seek shareholder approval for the preferential allotment via an Extraordinary General Meeting, subject to regulatory and exchange approvals.
Legal Teams Involved
Cyril Amarchand Mangaldas — Advised Ingredion Group
Overall Transaction
- Anand Jayachandran, Partner
- Megha Krishnamurthi, Partner
- Rohit Maheshwary, Senior Associate
- Kumari Saloni, Associate
- Ayush Katyayana, Associate
Real Estate Aspects
- Siddharth Singh, Partner
- Rushi Panchal, Associate
Competition Law Aspects
- Avaantika Kakkar, Partner (Head – Competition)
- Anand Sree, Of Counsel
For more on law firm deal activity, see the Deal Meter.
Significance and Impact
This transaction is significant for several reasons. The partnership includes a preferential equity investment by Ingredion into Sanstar, along with plans to establish a jointly-owned venture focused on specialty pharmaceutical excipients and other high-value ingredient solutions. The dual-instrument structure — combining a direct equity stake with a greenfield JV — is relatively uncommon in the India inbound investment space and signals a deep, long-term commitment rather than a passive financial investment.
The joint venture will combine Sanstar’s sourcing and manufacturing capabilities with Ingredion’s formulation and market expertise to serve customers in India and provide export opportunities from the country. India’s specialty starch and functional ingredients market is described as among the fastest-growing in Asia-Pacific, with rising domestic consumption, pharmaceutical exports and clean-label, sustainable formulation trends making India a key growth platform for the new joint venture.
The mandate also required multi-practice coordination within Cyril Amarchand Mangaldas, spanning corporate, real estate, and competition law — reflecting the regulatory complexity inherent in a cross-border investment paired with a greenfield pharma manufacturing JV.
Conclusion
Cyril Amarchand Mangaldas successfully advised Ingredion on a structurally layered India entry — a preferential allotment at ₹198.3 crore and a 70:30 pharma JV with listed entity Sanstar Limited. The deal underscores growing MNC appetite for India’s specialty ingredients sector and the demand for integrated, multi-practice legal counsel on complex cross-border transactions.
External References: Ingredion GlobeNewswire Announcement | Sanstar PRNewswire Release | Business Standard | The Wire
Disclaimer: This article is for informational purposes only and does not constitute legal advice. It is based on the details provided and publicly available sources.
